It looks like bitcoin is back on its way towards the top. The currency has hit the $11,000 mark again for the first time in several weeks after a series of spikes that saw it rising gradually through the $10,000 range, thereby suggesting that perhaps this time, the currency will remain within bullish territory.
Bitcoin Is Back On Its Way Up
This is a problem that we’ve seen with bitcoin several times over. When the currency rises too quickly, it fails to sustain a strong momentum and cannot appear to keep its energy at a heightened pace. The recent rise to $12K arguably occurred too fast, and as a result, the currency took several slips backward, eventually falling into the high $9,000 window.
However, this recent rise to where it is now happened in steps rather than all at once. The currency got back on its feet and managed to inch its way back towards $11,000. Getting beyond the $10K range took a healthy amount of time, with a rise of a few hundred dollars here and there over the course of several weeks. From there, $11,000 was hit after bitcoin prepared itself for higher steps.
There are several things that have happened recently that have likely led to bitcoin’s meteoric rise. For one thing, we are getting more and more evidence that institutions are looking to play a larger part in the crypto world. Companies like MicroStrategy, for example, are pushing bitcoin as a store of value over cash and utilizing it to keep themselves strong during this time of harsh economic circumstances.
After buying more than $250 million in bitcoin the first time around, MicroStrategy announced that it would be adding another $175 million in BTC to its growing wealth stash and that it would potentially utilize bitcoin as a potential “safe haven” asset to keep itself stable.
This is huge in that bitcoin, for the most part, is widely considered speculative amongst most traders, and the fact that such a large company can afford to purchase so much – and that it’s being used to keep its operations in tow – speaks to the power and benefits that bitcoin offers.
A Few Additional Contributions
In addition, several analysts and traders – including Edward Morra – are noting that the new CME gap for bitcoin is at $10,620, which may have contributed to the spike. In a series of tweets, Morra explains:
CME chart has a fresh gap 10620, usually most of the gaps (~90 percent) are filled within a few days max, with exceptions (ten percent) that take a long time (like your $9,6 gap from July). So, it makes sense to assume higher gap at 10620 gets filled first here and then we see how it goes.
Either way, it’s refreshing to see bitcoin back in a more “respectable place.”
Source: Read Full Article